The Board of Directors of Habib Metropolitan Bank Limited (PSX: HMB) has approved the creation of an Exchange Company, according to the bank’s filing on the Pakistan Stock Exchange (PSX) on Tuesday.
This exchange company will be a wholly-owned subsidiary of the bank. However, the final decision is pending approval from the State Bank of Pakistan (SBP) and the completion of regulatory requirements.
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This move is part of a broader effort to combat illicit activities in the black market. The SBP is implementing structural reforms in the exchange company sector to strengthen oversight, governance structures, internal controls, and compliance procedures.
The SBP has also increased the minimum capital requirement for exchange companies from Rs 200 million to Rs 500 million, with the added condition that the capital must be free of losses.
Habib Metropolitan Bank joins several major banks, including United Bank Limited (UBL), Meezan Bank, MCB Bank Limited (MCB), Bank AL Habib (BAHL), Allied Bank Limited (ABL), Faysal Bank Limited (FABL) and Bank Alfalah (BAFL), in their pursuit to establish their own forex companies.
Notably, Habib Bank Limited (HBL) and the National Bank of Pakistan (NPB) had ventured into exchange companies before the implementation of these new SBP regulatory measures.
